Capcom First Quarter Profits Drop 90%

Japanese developer and publisher Capcom has reported a staggering 90.4% drop in net income for its 2011 fiscal year's first quarter compared to the same period last year.

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Capcom's net income between April 1 and June 30 was 213 million yen (around $2.4 million US), down roughly $23.2 million US from the previous fiscal year's first three months. The blame is pinned on factors including shrinking US and European markets, exchange rate changes, poor sales and an increase in development costs.

Capcom reports that its "flagship title" Lost Planet 2 "underperformed its projection substantially" while Monster Hunter Tri "grew at sluggish pace" and Ghost Trick: Phantom Detective--due to hit North America this winter--"struggled." Lost Planet 2 faltering must doubly sting as Capcom pinned a portion of the blame for its 73% drop in profits last year on the fact that the shooter was delayed until its 2011 financial year.